Three major challenges of digital payments

DNVN - Digital payments are opening up opportunities for transparent and safe financial access for people, while also supporting businesses to integrate more deeply into the digital economy. However, along with that boom are three major challenges that need to be solved...

In the context of Vietnam's accelerating digital economy , cashless payments are increasingly asserting their central role in financial and economic life. Along with opportunities, challenges regarding safety, trust and accessibility still exist. This was also the content discussed at the Vietnam Card Day 2025 conference, held on October 7 in Hanoi, with the theme "One touch - Ten thousand trusts: Creating the future of digital payments".

The event was organized by Tien Phong newspaper and the National Payment Corporation of Vietnam (NAPAS) in coordination with relevant units. During the discussion session on security, Mr. Sharad Jain, Country Director of Mastercard in Vietnam, Laos and Cambodia, gave a speech on the topic “Unleashing human potential through secure and accessible payments”.

Mr. Sharad Jain, Country Manager of Mastercard in Vietnam, Cambodia and Laos presented a paper at the workshop .

According to the State Bank of Vietnam , by the end of 2024, the country will have more than 204.5 million personal payment accounts and over 154.1 million active cards. Nearly 87% of people over 15 years old have a bank account. In 2024, the total value of non-cash payments will reach VND 295.3 trillion - 26 times higher than Vietnam's GDP. In particular, the number of transactions via QR codes in the first quarter of 2025 increased by more than 81% over the same period last year, becoming the fastest growing and most widely applied non-cash payment method.

Mr. Sharad Jain said that these figures show Vietnam's impressive transformation in the journey of digital payment. Digital payment not only simplifies daily transactions but also opens up transparent and safe financial access opportunities for people, while supporting businesses to integrate more deeply into the digital economy.

However, along with that boom comes three major challenges that the industry needs to address: accessibility, security, and customer experience.

In terms of accessibility, although digital payment infrastructure has developed rapidly, 62% of Vietnam's population still lives in rural areas - where many vulnerable groups do not have full access to services. To solve this problem, according to Mr. Sharad, Vietnam has a good foundation with eKYC, QR network, biometrics. In the coming period, it is important to simplify access to digital solutions, closely combining the government , banks, fintech and technology companies.

Regarding security, according to him, although technology has developed, concerns about security are still the main reason why many people are hesitant about digital payments. Vietnam has recorded tens of thousands of online scams, card fraud and cyber attacks in recent years, causing great damage and eroding user confidence. Mastercard now considers security and trust as a focus: in 2024, its network processed more than 159 billion global transactions, and has invested 10.6 billion USD in cybersecurity innovation since 2019. AI and machine learning solutions help detect fraud in real time, minimizing risks for consumers and financial institutions.

Several technology solutions such as Consumer Fraud Risk and Mastercard Identity Solutions are being deployed to protect “hidden” transactions in the background, both secure and without interrupting the experience. Thanks to the application of technology, in the past three years, Mastercard has prevented $47.9 billion in fraud losses.

In terms of user experience, this is the key to sustainable development of digital payments. For consumers, digital payments bring convenience, speed and transparency; and for businesses, especially small and medium-sized enterprises, this is an opportunity to expand customers, increase operational efficiency and connect with the e-commerce ecosystem.

Mr. Sharad Jain emphasized that technology is only truly meaningful when it is simplified and easy to use, helping people form daily payment habits. To achieve that, it is necessary to maintain close cooperation between the Government, banks and technology enterprises to expand payment infrastructure and utilities.

Recognizing Vietnam as one of its key markets, Mastercard aims to have 100% of card transactions in Vietnam tokenized and securely authenticated by 2030. Mastercard has accompanied Vietnam on its journey to digitize payments for more than 15 years and is committed to continuing to improve real-time payment efficiency by preventing fraud, ensuring secure cross-border data flows, and promoting technological innovation according to global standards.

Hoang Phuong

Source: https://doanhnghiepvn.vn/kinh-te/ba-thach-thuc-lon-cua-thanh-toan-so/20251008070315941